Truth be told, every day more companies are realizing that cloud computing on a scale that is faster and broader than most would have originally guessed.  This includes cloud-based enterprise resource planning (ERP).

In large part, executives have shown a growing enthusiasm for financial freedom and flexibility that can only be delivered by the clouds modular, and pay-by-use style of accessing cutting-edge technology.  Actually a Financial Executives Research Foundations (FERF) survey in collaboration with Gartner in 2012 revealed that 53% of chief financial officers feel that more than half of the transactions in enterprise will be conducted via SaaS during the coming 4-year period.  That’s a huge increase from the 12 percent of today.

If you are still trying to evaluate if the cloud is a fit for your company or organization we have developed a list of positives and negatives for you to consider about cloud ERP to help you make a decision.

Pros: When Cloud Computing Makes Sense

The following are some of the most compelling reasons why cloud computing may make sense for your business:

• No Server Maintenance – You no longer have to manage your own hardware and software. This opens up office space, eliminates maintenance costs, and reduces electricity use.
• Reduced Costs - When you have your application running in the cloud, the IT staff doesn’t have to worry about servers, networking and operating system software support. Those things are being taken care of by the cloud provider.
• Improved Cash Flow - When deploying a large system on-premise that requires multiple servers and software, a large, up-front cash outlay is also required. When using a cloud, normal charges are billed on a monthly basis as an operating expense rather than a capital expense. This improves a company’s cash flow.
• Mobile Computing Made Easier - Most companies have complicated security protocols but with the cloud access, authorizations are taken care of effortlessly.
• Superior Integration With Other Systems – The cloud was purposefully designed for easy interoperability, which adds the option for current or future usage of additional products.
• Faster Implementation – Cloud ERP solutions are managed and hosted by the vendor therefore you do not need to set up or install any hardware or software.
• Data Back-Ups – As opposed to the horrible risk of crashing your in-house server(s) and losing data, third-party hosted ERP clouds have redundancy. That means that your data is copied to at least two locations, so if one fails you still haven’t lost anything.

Cons: When On-Premise Works

In some instances, an on-premise ERP deployment may be right for your company. Let’s explore some reasons why:

• Total cost of ownership (TCO) - Paying a low monthly subscription for software certainly helps a company’s cash flow. However, over the long term, the software can become more expensive.
• Outside risks - When software is hosted on-premise, everything resides within your company walls. When it is hosted in the cloud, the cloud provider has access to and control of the hardware and software. Before selecting a cloud-based service provider, evaluate and set the level of control in the service level agreement.
• Data control - Having an on-premise solution may make sense when you need to keep sensitive or regulated data local.

At the end of the day, moving your ERP to the cloud is a big decision that should not be taken lightly. It’s important that you do your homework before making the decision and contact an expert, like Borek Business Solutions, who can help you evaluate what’s the best solution for your business. Or if you want to jump right in and are interested in trying it, you can access a free 30-day trial of the cloud Microsoft Dynamics GP ERP tools here.

By Roger Borek, Borek Business Solutions, Microsoft Dynamics GP Implementation Partner, Eugene, Oregon

About Borek Business Solutions

We Get It.

Since 1999, successful businesses and organizations have looked to Borek Business Solutions for high-quality business solutions, outstanding services and expert technical support. As one of today's leading Microsoft Dynamics GP ERP solution providers throughout Oregon and the Pacific Northwest, we're dedicated to helping small to mid-market organizations improve their success through technology.

We're experts in Microsoft Dynamics GP, an integrated, adaptable, user-friendly ERP business management solution that automates and streamlines financial, customer relationship, and supply chain processes in a way that helps you drive business success and achieve:

• Improved efficiency, responsiveness and productivity
• Increased profitability
• Greater strategic and competitive advantages for long-term success

Borek Business Solutions is committed to outstanding customer service, innovative product implementations, quality technology certifications and proactive customer initiatives. Borek has built a strong reputation as a premier Microsoft Dynamics partner and is consistently recognized by Microsoft and other prestigious organizations for its excellence.

If you are considering new accounting software, upgrading your existing system, or currently use Microsoft Dynamics GP and want to speak with an expert, feel free to contact us at Borek.

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